What Are the Different Types of Debit Cards That Exist Today?

Did you know that actually, not all debit cards are created equal these days? Here are the many different types of debit cards that exist today.

When you need to make a purchase, you may reach for a debit card. But did you know that not all debit cards are alike? From preloaded cards to government-issued cards, a lot of cards qualify as debit cards.

The options don’t end there, either. Read on to learn about the different types of debit cards that exist today

Prepaid Debit Cards Can Be Loaded with Money

Prepaid debit cards can be loaded with a specific amount of money from your banking establishment. You can think of them as being like a personal gift card, and in that way, they can be a helpful way to become more mindful of spending. You can use them or assign one to one of your children to nurture fiscal responsibility.

Have a look at some options to keep your financial ducks in a row. With prepaid cards, you can reload them with more money as you draw down an amount. Just be sure you’re aware of how much money is loaded so you don’t run out of money to make a necessary purchase!

Gift Cards Are Debit Cards

Looking for a good Christmas gift to offer at your next holiday party? Gift cards, which are a type of debit card, might be your best bet. You can get gift cards to your favorite online stores, restaurants, and more.

Much like other debit cards, gift cards can come preloaded with the amount of money you determine. If you’re getting a gift card for your parents, for instance, you can add enough money to cover two meals and drinks at their favorite restaurant.

ATM Cards Are Among the Most Popular Types of Debit Cards

Many people like working with debit cards because they can help with staying on a budget. With credit cards, there is a risk of overspending and creating a large monthly bill. But with a debit card, you’re working with a more defined amount of money. 

You can get ATM cards that are tied to your financial institution and draw money from a checking or savings account. And with an online banking account, you’ll see how a purchase impacts your total savings right away, unlike with a credit card.

The Government Can Issue EBT Cards 

If you are eligible to receive certain government benefits, you may be issued an electronic benefits transfer (EBT) card. With this card, you can make purchases that fall under approved categories. 

For instance, if you are unable to afford basic needs, such as food, an EBT card may be preloaded with money to cover this. Each month, the government entity overseeing the funds can add more money. You’ll also only be able to use the card for its designated purpose.

Find the Best Debit Cards for Your Needs

When it comes to managing your personal finances, use different types of debit cards. You can opt for prepaid cards if you’re trying to limit spending on unnecessary items, or stick with traditional ATM cards. And when you’re looking for a good birthday or holiday gift, you can offer a gift card.

For more tips to improve your financial literacy, check back for new and informative articles!